China approves only Domestic Automakers for Fuel Efficiency Subsidies

It was earlier reported that China would promotes its CleanTech Industry through Electric Vehicle subsidies.It would give between $7000-9000 in subsidies to Electric Vehicles and Hybrid Vehicles.Note China is already a leader in Battery Technology for Electric Vehicles with both Japanese and American automajors looking to Chinese technology and production of Batteries for their new age automobiles.China has always been a strong supporters of its domestic industry through massive subsidies.The Green Industry has been no different receiving large direct and indirect subsidies which has made China a leader in Solar and Wind Energy production.

China is looking to extend the lead in Electric Vehicles as well.The Government approved Fuel Efficiency Subsidies for Cars made by 15 domestically owned companies and Joint Ventures.The subsidies which amount of $450 is not a big amount compared to the $7000-9000 for fully Electric Vehicle,s but would help promoting Clean Technology even in the normal Oil guzzling Automobiles.China has also been proactively restricting the exports of rare earth minerals which are essential for manufacturing Electric Vehicles.Leading Japanese automakers like Toyota and Honda could soon face huge supply constraints in manufacturing EVs in the future as China clamps down on Rare Earth Mineral Exports.Note the US stimulus has not got any such protectionist elements despite some protests raised by some legislators.

China has approved cars made by Warren Buffett-backed BYD Co and 15 other Chinese automakers and joint ventures to receive fuel-efficiency subsidies of 3,000 yuan ($441) per vehicle, a top government agency said on Wednesday.Energy-saving cars made by Hyundai Motor’s China car venture and Changan-Ford-Mazda, a three-way tie among Chongqing Changan Automobile Co, Ford Motor and Mazda Motor, are also among the approved models, the National Development and Reform Commission said on its website.Beijing also unveiled a pilot program in five Chinese cities earlier this month to subsidize buyers of electric and hybrid vehicles as it steps up efforts to cut emissions in the world’s biggest auto market.

Sneha Shah

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